Spanish side Valencia have confirmed that Uruguay midfielder Ignacio Gonzalez
will join Newcastle on a season-long loan deal.

By Steve Wilson and Matt Lawless

1:46PM BST 01 Sep 2008

The Spanish side have farmed the player to Newcastle immediately upon agreeing a four year deal to sign Gonzalez themselves.

Gonzalez's move to the Mestalla - albiet a very tempory one - comes after he shone whilst playing on loan at Monaco during the second-half of last season.

The 26-year-old, who has 21 caps for his country, moves from Uruguayan club Danubio whom he joined in 2002.

"Nacho Gonzalez has become a new player at Valencia for the next four seasons," read a statement from Valencia

"The Uruguay international, who spent the last few seasons at Danubio and Monaco, will play on loan this season at the English side Newcastle."

Meanwhile, Newcastle are in talks to sign Spanish striker Xisco after his club revealed they have reached a £5.7 million agreement to sell the player.

Although personal terms have not yet been agreed with the 22-year-old, Deportivo coach Miguel Angel Lotina is resigned to losing the promising Spain under-21 international.

"Today I was told that there are a lot of possibilities that he will go to Newcastle," Lotina told radio station Onda Cero.

"I don't have confirmation that it has been done, but an offer exists. He is an important player but the offer which Newcastle made must also have been important."

One player who could now be staying at Newcastle is Alan Smith. The one-time Egland international had been expected to undergo a medical at Everton today with a view to a £3 million move but has been seen training with Newcastle instead.